# '^'^onQmm m BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C
.
Essentia l Ai r Servic e a t 

### MASSENA , NE W YOR K OGDENSBUR Q NE W YOR K ) OST-1997-284 2 WATERTOWN , NE W YOR K ) Under 4 9 U.S.C
. §4173 1 e t

seq . )
GULFSTREA M INTERNATIONA L AIRLINE S PROPOSA L T O PROVID E SUBSIDIZE D AI RSERIC E A T MASSENA
. OGDENSBURGAN D WATERTOWN
. NE W YOR K
Correspondenc e wit

h regard to thi s documen t

shoul d b e addresse d to : Mickey Bowma

n Vic e President

o f Corporat e Developmen t Gulfstrea mInternational Airline s 320 1 Griffi

n Road , 4" ' Floo r Ft
. Lauderdale , F

L 3331 2 Telephone : 270-689-218 0 Fax:270-689-218 0 E-Mail : mbowman@gulfstreamair.co m Gulfstrea mInternational Airline s ("Gulfstream" ) cordiall y submit s it s proposal to provid e subsidize d air servic e to Massena , Ogdensbur g and Watertown , Ne w York
. Gulfstrea mhereb y offer s one , "al l o r nothing " optio n fo

r service
. Gulfstrea mpropose s t o operat e flights, under it s independen t

Gulfstrea mInternational Airline s identit y to th e larg e hu

b airpor t o f Boston , Massachusetts
. A s recentl y a s 2007 , aforme r EA S carrie r

produce d significant traffi c fromthi s upstat e regio n wit h servic e t o Boston
. Over 25. 5 millio n passenger s travele d throug h Bosto n Loga

n Airpor t i n 2009 , includin g 3. 7 millio n international passengers . Bosto n i s trul y th e gatewa y o f Ne w Englan d receivin g servic e from4 7 schedule d carriers , wit h no singl e carrie r

demandin g mor e tha n a25 % marke t

share
. Bosto n enjoy s non-sto p servic e t o som e 7 1 domesti c destination s a s wel l a s 3 0 non-sto p international destinations
. Gulfstrea mha s maintaine d interlin e ticketin g an d baggag e agreement s wit

h mos t legac y carriers
. Gulfstrea mcontend s tha

t reasonabl e loca

l fare s wil l stimulate deman d an

d th e variet

y o f destination s availabl e fromBosto n wil l allo w thes e market s to recaptur e traffi c tha t ha s bee n los t

over th e years . I n complianc e wit

h Publi c La

w 100-223 , Gulfstrea

mpropose s to operat e thes e flights usin g Beec h 1900D turboprop s tha

t are pressurize d an d accommodat e 1 9 passenger s t o the , FA A define d larg e hu

b a t Boston , Massachusetts
. Th e 1900D feature s stan d u p headroo man d apressurize d cabin tha t w e fee l i s critical i

n recoverin g los t

passenger s wit

h ampl e carg o capacit

y to accommodat e bulk

y militar y duffl e bags
. O f particula r not e fo r Watertown , NY , give n it s proximit y to For t DrumU S Arm

y Base , i s th e fact

that Gulfstrea mi s acertifie d Departmen t o f Defens e ai r

servic e provider
.Servic e Optio n 1 24Weeld y frequencie s betwee n Massena , Ne w Vorl ^ an d Boston , Massacliusetts ; 2 4 weeld y frequencie s betwee n Ogdensburg , Ne w Vorl c an d Boston , Massacliusett s an d 2 4 weeMy frequencie s betwee n Watertown , New Yor k an d Boston , Massachusett s Gulfstrea mpropose s t

o operat e thes e flights under i t own independen t

marketin g identit

y Th e timin g o f thes e flights wil l b e optimize d fo r connection s to and fro

mbot h legac y and lo w cos t

airlin e flights a

t Bosto n a s well
. Gulfsfrea

mpropose s to encourag e connectin g traffi c b y usin g asimplifie d loca l fe e structure whereb y passenger s connectin g t o o r fromother

airlin e flights woul d pa

y onl y th e low , loca

l far e i n additio n t o th e lo w fare s already afeatur e a t Boston
. Th e basi c servic e patter n woul d consis t

o f two , non-sto p roundtrip s eac h weekday to Bosto n fro meac h o f th e thre e cities
. A singl e non-sto p roundtri p fromeac h cit

y woul d operat e on Saturday s and Sunday s to Boston
.

Servic e Optio n 1 Gulfstrea mAirline s Sampl e Fligli t

Scliedul e
FRO M T O DE P AR RFL T EQUI P FREQUENC Y STA ST A TIM E TIM E NU M STO P
BO S MS S 805a m930a m900 7 BE l BO S MS S 405p m530p m901 0 BE l Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 MS S BO S 950a m1110am900 7 BE l MS S BO S 550p m710p m901 0 BE l Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 FRO M T O STA ST A DE P AR RFL T

TIM E TIM E NUM EQUI P FREQUENC Y STO P
BO S OG S BO S OG S OG S BO S OG S BO S 800a

m930a m900 1 400pm530pm900 4 950a m 1115a m900 1 550p m715pm900 5 BE l

BE l BE l BE l Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 

### FRO M T O ST AST A DE P AR R FL T TIM E TIM E NU M EQUI P FREQUENC Y STO P
BO S AR T 1200p m130p m900 2 BE l BO S AR T 800p m930p m900 5 BE l Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 AR T BO S 600a m725a m900 0 BE l AR T BO S 200p m325p m900 3 BE l Monda y thr u Saturda y 0 Sunda y thr u Frida y 0 (BOS=Boston ; MSS=Massena ; OGS=Ogdensburg ; ART=Watertown ) (Note : Thi s Schedul e i s fo r illustrativ e purpose s an d ma y no t reflec t th e final publishe d product )GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Service Proposa l Massena , N

Y - Boston , MA Optio n I
Massen a Hub Serve d Numbe r o f Roundtrip s pe

r Servic e Da

y ( 2 non-stop ) Operatin g Statistic s Assume d Completio n % Annual Adjuste d Bloc k

Hour s Annua l Adjuste d Departure s Annua l Adjuste d ASM s Annua l RPM s Projecte d Loa

d Facto r Revenu e Proiection s Enplane d Passenger s (Averag e a s Mileag e Operated ) Averag e Far

e Passenge r

Revenu e Expens e Projections
. Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fue l Marketin g Tota l Annua l Expense s Projecte d Profit

/ (Loss )
Profit Element @ 5 %
Annua l Subiid y Require d Subsidy pe

r Departure Subsidy pe

r Passenge r Bosto n 2

98.0 % 1,634.8 0 1,226.40 6,105,03 6 1,676,800 27.5 %

6,40 0 26 2 $ 69.3 8 $ 444,03 2
$207,78 7 $408,50 0 $761,72 4 $744,81 9 $686,61 4 $12,00 0 $2,821,44 5 ($2,377,413 ) $141,07 2 $2,518,48 5 $2,053.5 5 $393.5 1GULFSTREA M INTERNATIONAI
. AIRLINE S Essentia l Ai rServic e Proposa l Ogdensburg , N Y - Boston , M A Optio n 1

Hub Serve d Number o f Roundtrip s per

Servic e Da

y (2 non-stop ) Operatin g Statistic s Assume d Completio n % Annua l Adjuste d Bloc k

Hour s Annua l Adjuste d Departure s Annua l Adjuste d ASM s Annua l RPM s Projecte d Loa

d Facto r Revenu e Proiection s Enplane d Passenger s (Averag e a s Mileag e Operated ) Averag e Far

e Passenge r

Revenu e Expens e Proiection s Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Administratio n Fuel Marketin g Ogdensbur g Bosto n 2

98 % 1,716.9 6 1,226.40 6,407,95 8 1,100,000 17.2 %

4,00 0 27 5 $ 69.3 8 $ 277,52 0
$218,23 1 $408,50 0 $796,98 9 $729,76 7 $721,12 5 $12,00 0 Tota l Annua l Expense s Projecte d Profit

/ (Loss )
Profit Element @ 5 %
Annua l Subsid y Require d Subsidy per

Departur e Subsidy per

Passenger $2,886,61 4 ($2,609,094 ) $144,33 1 $2,753,42 4 $2,245.1 2 $688.3 6GULFSTREA M INTERNATIONA L AIRLINE S Essentia l Ai r

Servic e Proposa l Watertown , M Y - Boston , M A Optio n I
Watertow n Hu b Serve d Numbe r of Roundtrip s per

Servic e Da

y ( 2 non-stop ) Operatin g Statistic s Assume d Completio n % Annua l Adjuste d Bloc k

Hour s Annua l Adjuste d Departure s Annua l Adjuste d ASM s Annua l RPM s Projecte d Loa

d Facto r Revenu e Proiection s Enplane d Passenger s Mileag e Averag e Far

e Passenge r

Revenu e Expens e Proiection s Flight Operation s Ownershi p Maintenanc e Reservations , Station s & Ad m Fuel Marketin g Tota l Annua l Expense s Projecte d Profit

/ (Loss ) Profit Element (Averag e a s Operated )

nistratio n

@5 % Bosto n 2

98 % 1,716.9 6 1,226.40 6,454,56 1 3,217,35 5 49.8 %

11,61 5 27 7 $ 69.3 8 $ 805,84 9
$218,23 1 $408,50 0 $796,98 9 $811,86 9 $721,12 5 $12,00 0 $2,968,71 5 ($2,162,867 ) $148,43 6
Annua l Subsid y Require d 12,31U0 2 Subsid y per

Departur e Subsidy pe

r Passenge r $1,884.6 2 $198.9 9I n conclusion , Gulfstrea

mbelieve s tha

t thi s proposal will provid e th e communitie s o f Massena , Ogdensburg an d Watertown , Ne w Yor k wit h superio r ai r service
. W

e fee l th e passenger s wil l benefit fro m th e strengt h o f th e Bosto n hu

b and attractio n o f

non-stop , stan d up , pressurize d ai r service
. Additionall y th e integrit

y o f servic e tha

t ha s bee n ahallmar

k o f th e Gulfstrea

moperatio n wil l retur

n bot h dependabilit

y an d reliability to th e travelin g publi c and resul t i n increase d ridershi p and passenge r satisfaction
. Respectfull y Submitted : Jul y 14,201 0

Micke y Bowma

n Vic e Presiden t

o f Corporat e Developmen t Gulfstrea mInternational Airline s